Treasury-Federal Reserve Accord of 1951

In response to the U.S. entry into World War II, the Federal Reserve committed itself to maintaining an interest rate of ⅜ percent on Treasury bills. After the war ended, the Federal Reserve wanted to move off of this interest rate peg. 

This timeline provides insight into the events after World War II that led to the 1951 Accord between the U.S. Treasury and the Federal Reserve System. These events outline the Fed's goal to be independent from the Treasury as well as the country's struggle with rising inflation. For more resources and further documentation, explore the FRASER subject Treasury and Federal Reserve Accord, 1951 and articles from the Federal Reserve Bank of Richmond and Allan Sproul at the Federal Reserve Bank of New York.

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Treasury-Federal Reserve Accord of 1951. https://fraser.stlouisfed.org/timeline/treasury-fed-accord, accessed on April 14, 2024.